3,000 more Lloyds jobs to go along with 200 branches as Brexit bites

These latest staff and branch cuts follow on from the 9,000 job losses and 200 branch closures announced in 2014 as part of the still nearly 10 per cent state-owned lender’s second group strategic review.

Lloyds shares fell almost 4 per cent in early trading on the news of the cuts.

Today’s announcement came as Lloyds issued its half year results which showed a 108 per cent increase in pre-tax profits to £2.5bn to the end of June, up from the £1.2bn recorded in the same period last year.

The rise was largely due to a sharp drop-off in payment protection insurance (PPI) compensation payouts, which has cost the bank more than £16bn since 2011 and dented previous profits.

Underlying profits at Lloyds Banking Group fell by 5 per cent, and chief executive Antonio Horta-Osorio warned that he expects a “deceleration of growth” following the UK’s decision to leave the EU.

The Group said the increased cost-cutting was as a result of the change in how people do their banking, and due to the chances of interest-rates staying low in the wake of Brexit.

But Mr Horta-Osorio emphasised that Lloyds was in a “strong position to withstand the uncertainty” created by the vote.

Unite national officer Rob MacGregor said: “This grim news of yet more job losses and branch closures will send a shiver down the spine of Lloyds employees, who have worked hard to make the bank a success and deliver excellent customer service against a backdrop of continual uncertainty.

“There is a real danger that customer service will suffer and access to banking for numerous communities will be damaged because of this latest round of savage cuts.”

MacGregor says the union will be pressing for guarantees over compulsory redundancies and warning it against cutting too far too fast.

He added: “Lloyds should be in no doubt that Unite will oppose all compulsory redundancies and will be doing everything in its power to ensure that those employees who wish to continue working for the banking group do so.”